Thu, May 1, 8:51 PM (22 days ago)
**Quaker Chemical Corporation (KWR) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $442.9 million, a 6% decrease from $469.8 million in Q1 2024. - **Net Income:** $12.9 million, down from $35.2 million in Q1 2024. - **Earnings per Share (EPS):** $0.73, compared to $1.95 in Q1 2024. - **Operating Income:** $27.6 million, a significant drop from $55.5 million in Q1 2024. - **Gross Margin:** 36.4%, down from 38.7% in Q1 2024. - **SG&A Expenses:** $119.0 million, a 4% decrease from $124.2 million in Q1 2024. - **Restructuring Charges:** $14.6 million, up from $1.9 million in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $3.1 million, compared to $27.2 million provided in Q1 2024. **Segment Performance:** - **Americas:** Net sales decreased by 7% to $213.7 million. - **EMEA:** Net sales decreased by 7% to $129.3 million. - **Asia/Pacific:** Net sales decreased by 2% to $99.9 million. **Key Trends and Uncertainties:** - **Market Conditions:** Soft end-market conditions and tariff uncertainties impacted sales volumes. - **Acquisitions:** Contributions from acquisitions partially offset declines in sales. - **Currency Fluctuations:** Unfavorable foreign currency translation affected sales. - **Raw Material Costs:** Increased raw material costs impacted gross margins. - **Restructuring:** Ongoing cost optimization program aimed at achieving $20 million in annualized savings. **Future Operations Impact:** - **Liquidity:** The company believes it has sufficient liquidity to support operations and fund business objectives. - **Debt Management:** The company is managing its exposure to variable interest rate risk through interest rate swaps. - **Strategic Initiatives:** Continued focus on sustainability goals and potential acquisitions. **Conclusion:** Quaker Chemical Corporation faced challenges in Q1 2025 due to soft market conditions, tariff uncertainties, and increased raw material costs. Despite these headwinds, the company is executing on its cost optimization program and strategic initiatives to drive future growth and profitability.